The Ohio Democrat. (Logan, O. [Ohio]) 1886-1906, 1887-06-25
A COLLAPSED CORNER.
The Bottom Falls Out of the Big
Wheat Deal In Chicago.
A psnsc Csused BY a Break OF Eighteen
and One Half Cents Per pushcl--sevcral
Large Fallures-- Milwaukee Dealers
Caaght-Thc Erect Elsewhere.

anu Oue- NWI C6uUN feF Itu8nGI-SeverNl
Large Fnilures--Milwaukee Dealers
Caaght-Thc Erect Elsewhere.
WILD SCENES on THE CHICAGO BOARD.
CHICAGO, June 15.-Yesterday was BY
long odds the widest day the Chicag,
Board OF Trade has ever seen. The power
ful wheat clique which has mystified ant
pcrplexed the speculative world for owe,
three months collapsed and left its princi
pals bankrupt Two old and we'll known
commission firms were carried down with
the wreck, and dozens Of others are lcf,
tottering on the verge Of ruin.
The failure Of Peter McGeoch and the
collapse Of the lard corner, which occurred
just four years ago to-day, was not a cir.
cumstance in its effects to the collapse OF
yesterday. The McGeoch deal affected only
the provision interest; the present deal af.
fected every body. Never IN the history oi
speculative trading has deal Of such ri.
gantic proportions been engineered so long
and systematically, and with such secrecy.
Though the deal has covered q period OF
three months, probably not over dozen
people, possibly not over half q dozen,
knew the principals. .....
The orders came from Cincinnati to c. j.
Kershaw, and were signed "W"-that Is
rs much as the trade knew, and even that
much was not known until the deal had
been under way for several weeks.
The clique bought May wheat stead
lily from the time the deal was
started up to the expiration of that op.
tion, at which time their trades were
changed into June. They readily took and
paid for all Of the May wheat delivered to
them, and evidently intended to do the
same with June. The action Of the Board
of Trade directors in declaring regular
large additional storage capacity was
something which they had not calculated
on and for which they were evidently not
prepared.
When 1t was known that the directors
of the board favored giving the trade re.
lief by making additional storage-room
regular, the powerful bears who have
grown rich on three years Of declining
markets started in to try the cliques en-
durance. Wheat was shipped from every
available point and the side-t tracks
of all Of the roads in this city are now
full Of wheat brought in for that purpose
The bears sold against this wheat in the
open market and the clique were the buy.
ers. Prices steadily crept up and became
a further inducement to farmers to market
their product At the time the collapse
came June wheat was worth SO cents; by
the time the collapse was an assured
fact the same month was selling at
731a cents and sales were made in the pit
ut still lower figure in the excitement Of
yesterday, though none were officially re-
ported at less than 7315 cents. The drop in
the June option was 1875 cents. The neces-
sary expense Of handling the large re-
ceipts of wheat was too much for even the
long purse of the clique, and they were
forced to the wall
The trades of Maurice Rosenfeld & Co.
were officially ordered closed out by the
secretary of the Board of Trade at noon
yesterday, but long before the announce
nent was made the crowd were practical
y assured that the clique had gone to
pieces. A secret meeting was held at the
Hotel Richelieu Monday night between
Joseph Wiltshire, Of Cincinnati, we'll
snown banker, who is said to have furn.
shed the money in the great corner, and his |
'rokers G. j. Kershaw, Frank johnson,
# Rosenfeld & Co., and Irwin, Green q |
Co., and Wiltshire departed, after prom
sing his Chicago operators that more |
money would be deposited to their
rider upon his arrival in Cincinnati. Up |
othe close Of 'change yesterday Wilt
hire had failed to keep his promise, and |
eosenfeld Il Co. became tired of waiting,
nd at noon ordered their trades closed
ut. Kershaw was more anguine and, al
hough he admitted that the funds had not |
rrived, still asked that his trades be kept |
pen until this morning. 1t is said that he |
xpects money from sources independent
I the clique, and in that case his failure
o-dav will be averted.
1t was pretty we'll understood among
ew Of the big bears on 'change that the
ionday night interview had not resulted
l any very pleasant con clusions for the
lique, and word went around at the OPEN
lg OF the board to raid the market Both
une and July wheat was offered from all
des OF the pit at the start; the former
roke q cents and the latter nearly cents
/ the first five minutes.
The first bid made for Nav wheat
Tas 81 cents and six minutes later wheat
ropped to 70 cents, difference Of 4%
ents from the closing price Monday
light Such scurrying Of brokers and
lessengers is seldom seen. They rushed
and out Of the big room hatless and out
breath, some to unload wheat and
thers to got instructions. Within an
our millions Of bushels were sold by the
lique.
The brokers supposed to be running the
orner began by bidding 80 cents, while
le opposition were offering wheat ut S61I.
. few minutes after eleven o'clock Murry
elson approached President Wright and
lade application for the marginal price of
une wheat to be fixed. Mr.. Wright re-
lied that the matter would be con-
dered at meeting to be held later.
While the above conversation was going
n the alleged clique brokers were selling
nly wheat against the cash wheat they
AL DQnn norruinu Tho /
reased as the hands on the indicator ad-
anced to 1874 and then dropped to Is A
inute later the hands pointed to
"a, drop Of six cents, and
le shorts were wild. All sorts of
stravagant bids were made, but very
wv were accepted. The bids fuc-
lated between 7719c and nc until the big
sll on the tower struck twelve, then the
dictator showed that q sale had been
ade at 1890, when the crowd was wild
he entire board was little less than
andemonium and the bears de-
ared it just retribution on
le bullish wheat manipulators. At
'.0 came the startling announce
ent that all persons having trades with
osenfeld & Co., one of the clique houses,
lould close them at once. The uproar
I'D not subsidized when July wheat took
Ie fourth and worst turn Of the day and
'opped for moment to "A cents.
At Rosenfeld's Office ManagerFrankJohn
IN was in charge, and said the clique had
olated all Of it's verbal, written and tel
graphic promises to put up more margins.
hen it was found that the money had
IT been deposited it was decided that in
der to treat oil alike and find out where
ey stood they had better order the trades
osed out, SO the announcement was &C.
'rdingly made. Continuing he said:
I'VE have paid for 1000 900 bushels OF wheat, I
II the attitude OF the directors OF the board In